What are the main contents of a partnership deed?

A partnership deed is an agreement in writing signed by all the partners duly stamped and registered.

It defines the rights, duties and obligations of partners and governs regulations among them in the conduct of business affairs of the firm. It is not a public document. A partnership deed usually contains the following clauses:

1. Name of the firm

2. Nature of the firm’s business

3. The principal place of business

4. Duration of partnership, if any

5. Names and addresses of partners.

6. Amount of capital to be contributed by each partner

7. Amount which can be withdrawn by each partner

8. The profit-sharing ratio

9. Rate of interest, if any, on capital and drawings

10. Amount of salary or commission payable to partners

11. Allocation of work among partners

12. Mode of valuation of goodwill

13. Procedure for admission, retirement, etc, of a partner

14. Procedure for maintaining accounts and getting them audited.

15. Procedure to be followed in the event of dissolution of the firm and settlement of accounts

16. Arbitration clause in case of disputes among partners

17. Loans and advances by partners and rate of interest payable on them.